DBM says 2026 policy ‘recalibration’ year for PH
The Marcos administration’s move to scale back its 2026 growth target was intended to give the government room to “recalibrate” priorities after a turbulent year, the Department of Budget and Management (DBM) said.
“While growth expectations for 2026 have been moderated, economic managers view this period as an opportunity to recalibrate policy priorities—particularly by strengthening the formulation and updating of integrated sectoral master plans, most notably in infrastructure,” the DBM said in a statement sent to the Inquirer.
To recall, Economic Planning Secretary Arsenio Balisacan earlier announced that the Development Budget Coordination Committee (DBCC) trimmed its growth goal for this year to 5 to 6 percent, coming from a range of 6 to 7 percent.
This was in response to the slower-than-expected third-quarter gross domestic product growth, which slumped to a four-year low of 4 percent. This raised the possibility that 2025 full-year growth could miss the 5.5- to 6.5-percent target.
Infrastructure spending has been a key drag on growth, which the DBM said the government was addressing through strengthened oversight and monitoring mechanisms.
“These include expanded use of real-time project tracking and automated geotagging of infrastructure projects, aimed at reinforcing accountability, mitigating implementation risks and ensuring better value for money,” the agency said.
While the DBCC is expecting a recovery in the medium term, the DBM said it is still “premature to draw definitive conclusions.”
Earlier, economists already signaled that the economy could only pick up slack if the government efficiently implements its catch-up plans and improves governance. They await improved spending, such as by prioritizing high-impact projects and enforcing transparency.
Pointing to the 2026 national budget, the DBM said its implementation would reflect the recalibration efforts by balancing development priorities with fiscal constraints.
“As with any budget cycle, programs and projects that were not accommodated due to resource limitations may be revisited in subsequent budget deliberations, subject to prevailing fiscal conditions and established evaluation processes,” the DBM added.
